Advanced Forex Blog

Stop Peeking Over Someone Else’s Trading Analysis

June 23, 2021 | 2:44 am | Advanced Forex Blog
June 23, 2021 | 2:44 am
Advanced Forex Blog
Stop Peeking Over Someone Else's Trading Analysis

Why nothing beats doing your own analysis

There’s no simpler or more direct way to put it. When you stop reading other people’s trading analysis is when you become good enough to do your own trading.

On the road to success, many traders learn from all sorts of different resources on the internet. And most of the time, the conversation and learning around trading are done on charts.


No Shortage of Resources

The fact is, the internet is loaded with so many analysis charts. From tradingview to websites and forums, everywhere you click, you will see published trading analysis.

But If you don’t know the person and haven’t tested their analysis, you really can’t know for sure what the quality of the work is.

A chart is a blank slate, which means that everything you plot on it will not make sense if you don’t know the context behind its creation.


Understanding the Concept of Analysis

On your path to becoming a successful trader, one of the main goals is to understand the analysis concept. This begins by finding out what type of analysis and strategy is right for you to do it yourself eventually.

If you’re trading on a live account and are relying on other people’s analysis, you’re likely doing something very wrong.

First, you’re relying on someone you don’t know. Second, you don’t know the background of their trading analysis and work. Let’s say the person who put the analysis together had a bad day when they worked on it. Sometimes people will make mistakes even if you really trust them.

You’ll never know the conditions this person was doing their trading analysis under. By following their work blindly, you’re gambling on someone with the preconception that it’ll be a quality product.


Missing the Bigger Picture

You’re not only avoiding training yourself to recognize patterns and to do the work yourself, but you’re also allowing yourself to become unaware of market situations. Once you see an analysis, you’re only seeing a fragment of the information needed to be considered before entering a trade.

For example, an analysis can be done hours before it’s actually published. In that time, certain market circumstances could have arisen that change the fundamentals of the trading analysis.

When you rely on this work, you might not be aware of the market changes and therefore put yourself at great risk. By the time you see the analysis and the market event has passed, the analysis is no longer relevant. You’ll be using an outdated trading analysis that doesn’t work with the current reality.

If you had done your own analysis, you’d be plugged into the market changes and would know when something was relevant or if its purposefulness had expired.


Managing Different Situations

The most important thing in trading is not the entry or exit or the analysis. It’s how you manage different situations.

When you rely on someone else’s analysis, it means you’re not going deep enough into the market to understand the conditions. You’re looking at the market superficially in a manner that is only about levels. There is so much more depth.

The price action, the behavior of price, the dynamics, the momentum, news, timing, sessions are all things that need to be included in your decision-making.

If you’re relying on someone else’s trading analysis, there’s a good chance you didn’t bother to learn or consider these other elements. This leaves you with massive blind spots and ill-prepared to be in the market.

Since the market is ever-changing, the analysis should evolve and progress over time. If you want to make it as a career trader, you have to be on top of that. You have to understand when the market is no longer obeying circumstances, and you have to be an early adopter of changes.

You will have to have your own ability, and If you can’t do your own trading analysis, stay away from the market.


There Are Benefits

Reading other people’s analyses is very good while you’re learning. For example, have a strategy in your mind, and then read the analysis to learn how to do it yourself.

But trading is a DIY profession, and if you can’t figure things out yourself, you’re in the wrong business. You are doomed to fail if you can’t handle it yourself.

Don’t waste your time if you’re not ready, willing, and able to learn and create the story and narrative of the market yourself.

Once you do it, don’t look back and re-focus on other people’s work. This will pull you away from what you need to do for yourself.

Don’t second guess yourself. Instead, believe in your education and analytical abilities.


Peeking Over Someone Else’s Trading Analysis – The Bottom Line

Every trader must have their own strategy, which they have tested in live trading.

It’s okay to see other people’s analyzes but not to run and copy them. You must check if it fits with your strategy.

It would be best if you used a trading plan, write all sorts of scenarios to sharpen your strategy.

There are no shortcuts in forex trading!

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